MoD to centralise software procurement

As it looks to increase its ICT spend

Common Topics

The defence ministry expects new discounts from centralising the procurement of its software licences and services.

The Ministry of Defence (MoD) is planning a new project to centralise its software procurement. It will be run by the Information Systems and Services (ISS) team, part of the Defence Equipment and Support organisation.

The team will be looking at introducing so-called software enterprise agreements to centralise the buying of selected software products, licences, and support at specially discounted rates.

A spokesperson for the ministry told GC News: "The advantages of these agreements for the MoD are in maximising its leverage; having corporate visibility of software products and spend levels; and also in utilising a single route to market and providing opportunities for improved license management.

"For the supplier, the advantages are in one point of contact within the MoD, better visibility of usage of their products across the MoD and a single purchasing route."

The ISS team will investigate which types of software are most widely used across defence operations and identify current and future requirements.

Kable's senior defence analyst, Chris Pennell, said: "This is a welcome initiative, as it will help to make the procurement of software applications easier for both the ministry and suppliers.

"I also hope this will open up the supplier shortlist to niche and specialist companies."

Research by Kable earlier this year forecast that the MoD is set to increase its annual spending on ICT above £2bn in 2008-09.

It said network-enabled capability will also lead to increased spend on software, mostly off-the-shelf, as new technologies are inserted into existing platforms, such as the Defence Information Infrastructure and the Defence Fixed Telephone Services.